Finance Ministry refutes speculative reports on GST rate changes

Finance Ministry refutes speculative reports on GST rate changes

The Union Finance Ministry on Tuesday (December 3) dismissed media reports on possible GST rate changes, calling them “premature and speculative.”

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In a post on X, the Central Board of Indirect Taxes and Customs (CBIC) said, “There are various reports in the media regarding the Group of Ministers (GoM) recommendations on GST rate changes regarding various goods and services. The reports in public media on the basis of GoM deliberations are premature and speculative.”

The GoM, chaired by Bihar Deputy Chief Minister Tejashwi Yadav and comprising ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, and Bihar, was constituted to examine GST rate rationalisation and other referred issues. However, its role is limited to providing recommendations.

Also Read: Adding goods to higher GST brackets is problematic, say experts

“The GST Council, chaired by the Union Finance Minister and including ministers from all States and Union Territories, is the sole authority empowered to recommend GST rates, including any changes,” CBIC clarified.

The ministry further noted that the GST Council has not yet deliberated on rate changes as it has not received any recommendations from the GoM. “The GoM has yet to finalise its recommendations and present them to the Council, after which a decision will be made,” the CBIC added.

This clarification comes in response to widespread reports suggesting imminent rate changes based on the GoM’s discussions. The ministry urged restraint, stating, “The reports in the media are premature and speculative, as no formal decisions have been taken.” The GST Council will review and take a final stance on the GoM’s recommendations once submitted.

Also Read: FM Sitharaman hints at lower insurance premiums if GST Council reduces taxes

Finance Minister Nirmala Sitharaman, in a post on X said Finance Ministers from various states in the GoM are working to address GST rate changes. “Thereafter, the GST Council, consisting of all state FMs will take up their recommendations, when they next meet,” Sitharaman said.

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